Ryanair ‘would recognise Aer Lingus unions’
Ryanair will recognise trade unions at Aer Lingus if its takeover bid is successful, the company said this afternoon.
Earlier this week the budget airline launched a second bid to buy Aer Lingus, with a cash offer of almost €750m.
Following a meeting with Transport Minister Noel Dempsey, who controls a 25% government stake, Ryanair boss Michael O’Leary published details of the bid.
In a move likely to appeal to the Government, O’Leary set out a five-point plan to protect the former state airline’s international standing.
The commitments include the promise to honour union agreements; plans to reinstate the closed Shannon-Heathrow route; handing control of the valuable Heathrow landing slots to the Government
and a €200m package to keep down costs of seats.
In a statement to the Stock Exchange, Ryanair said it was a substantial deal offering a unique merger. The company said it would give consumers, the Government and the European Commission the confidence to accept the deal.
“Ryanair believes that these reductions in Aer Lingus’ short- haul fares and removal of Aer Lingus’ fuel surcharges will deliver annual consumer savings of over €140m,” the airline said.
The company said the €200m package will keep Aer Lingus’ short- and long-haul fares low and increase competition between the two airlines in and out of Ireland.
Ryanair has bid €1.40 a share for Aer Lingus, half the amount of its first offer in October 2006. This would value the Government’s 25% shareholding at about €187m.
Aer Lingus has declined all approaches.
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